Apple Cuts Production of New iPads To Use Chips For iPhone 13
As Apple is enjoying huge demand for its newly-released iPhone 13, the U.S. giant is facing an unfortunate predicament at the same time - limited supplies. This has resulted in longer waiting times with consumers complaining about it online.
While it enjoys huge popularity in big markets such as China, Europe and America, the company is yet to keep up with the growing demand as COVID-19 restrictions have brought about supply chain constraints.
Thus, the company had to make the tough decision of limiting its production of the latest iPad to just 50% from its original plan to be able to meet the demand for the iPhone 13 lineup. As iPads and iPhone models make use of similar components like the core and peripheral chips, Apple is able to shift its supplies across different devices when needed.
In fact, according to Nikkei Asia sources, even parts meant to be used for older iPhones were also being reallocated to the iPhone 13.
Prioritising production of the iPhone 13 is based on the strong demand for Apple’s flagship smartphone, which has maintained its popularity in spite of growing competition and the current pandemic.
The company anticipates more demand for the iPhone 13 in Western markets as pandemic restrictions ease, compared to the iPad. These markets account for 66% of Apple’s overall revenue.
As sales for newly-released iPhones typically peak in the early months of its release, Apple is keen to ensure that production for the iPhone 13 doesn’t hit any snags, making it the company's top priority right now.
This doesn’t mean that demand for the iPad has waned; in fact, Apple’s popular tablet has also seen growth in sales. Global sales have increased 6.7% resulting in 53.2 million devices sold in 2020, securing 32.5% of the market share to come in way ahead of its competitor, Samsung, which ranks second in market share at 19.1% according to IDC data.
In the first nine months of the year, shipments for the iPad totalled 40.3 million, which is a 17.83% increase compared to the same period last year.
The increased demand for the iPad is also attributed to more people staying at home or working remotely and relying on tablets to keep them connected and increase productivity.
However, this is not the first time that Apple prioritised the production of its iPhones over its iPads. Previous supply chain constraints that were also caused by the COVID-19 pandemic prompted Apply to reallocate some iPad parts to the production of the iPhone 12.
As the company hopes to have a smooth production for the iPhone 13, iPad users will also bear the brunt of this decision as there will be longer waiting times for new iPads. According to the Apple website, customers in Western markets who ordered 256 GB iPads and iPad Minis in October will have to wait until December this year to receive their products.
Written by Abby Rebong